AI-Powered Spend Analytics
Solves more than just
Gathering, cleansing, normalizing, and classifying data are the the first steps in solving many types of procurement problems. Simfoni Spend Analytics has out-of-the box dashboards to visualize all areas of procurement and provides extreme filtering to focus on areas that impact your company the most. Whether you are a category manager, sourcing specialist, or procurement professional, Simfoni Analytics provides data management, opportunity assessments and actionable insights for data-driven procurement decision making.
See the Savings
Get actionable insights for decision making.
Achieve 100% Spend Visibility
for More Procurement Savings
THE FLASH REPORT - Follow the Money
If your spend data doesn’t include transactions from all systems or is not categorized to Level 4+, then you may not actually know where your procurement risks and opportunities exist.
AI and automation powered Classification, Normalization, Dashboards and Insights, bring visibility to all levels of your procurement team.
Using the Flash Report Overview, your team can explore all aspects of your spending – by category, supplier, region, etc. Quick View Buttons slice data instantly to see non/PO, diverse/all suppliers, non/addressable, and non/contracted transactions over specific time frames. Separate long-term patterns from new hiccups by exploring trends over time. A plethora of filters allow you to drill-down and see where the money really goes.
OPPORTUNITY ASSESSMENTS & BENCHMARKING
Know Where You Stand and Your Options
The Simfoni AI-powered Opportunity Assessment engine fills your savings opportunity pipeline using over 13 savings levers and benchmark data across industries and regions. With this information, Simfoni Analytics produces initiatives that are ranked by amount of potential savings, and ease of accomplishing.
These are brought together to form a Wave Plan for the next set of procurement improvements whether they be cost reduction, cost avoidance, or process efficiencies.
Opportunity Assessments requires deep procurement expertise and analysis skills to unearth savings and cost avoidance. Our AI model trains continually – learning from the experts in our procurement teams and those across our client organizations.
Customers can evaluate their procurement performance by comparing their Simfoni Savings Profile to Savings Benchmarks created based on 1st part data from over a decade of client data. In addition, provided there is line level data available or manufacturer part information, Simfoni Analytics can also deliver price intelligence for over a million SKUs from public sources of information. These benchmark references provide a strong basis for future negotiations by category managers.
Simfoni can also compare your procurement process efficiency to other similar companies through our partnership with the Hackett Group to provide 3rd-party process metrics and other publicly available data.
Spend with Suppliers Consciously
99.9% of all businesses are small businesses. And 50% of those are owned by women or people of color. These small businesses most often hire people from their community.
Actively choosing small and diverse suppliers helps grow businesses and improve their surrounding communities.
In the dedicated Supplier Diversity dashboard track and manage the many certification categories and spending with your diverse suppliers. Diverse suppliers include minority- and women-owned businesses, companies created by veterans and those by disabled individuals.
In addition to the specific dashboard, there is a “Diverse Supplier” Quick Filter for spend analysis dashboards providing quick visibility into your investment in diverse suppliers no matter what perspective you view your procurement data.
Recently, there are great, public, examples of Brands and investors holding themselves, their suppliers, and their business partners accountable for supporting diversity. Challenging them to act now and demonstrate that they value diversity. These Brands are using their purchasing power and making direct requests to change. And it’s working!
Hold your company and your suppliers accountable and improve your Tier1 and Tier 2 diverse supplier spend.
Consolidate Suppliers, Increase Contracts and Catalogues
Purchasing quality products for fair prices may seem like magic to most people, but procurement professionals work hard to get the best product, terms, and prices.
Because the Simfoni Analytics analysis provides classification to level 4+, procurement professionals have increased visibility into equivalent products and comparable suppliers. With supplier visibility in the Commonality Analysis Dashboard, product volumes and suppliers can be consolidated for maximum benefit across business units.
The Supplier Management Module shows which products are purchased under long-term contracts, under no contracts, through catalogs, and via spot buys. This understanding launches initiatives to optimize prices, terms, delivery, and interactions with suppliers in general.
KPIs, BUDGETS, & FORECASTING
Forecast Future Spending Based on Data
Thanks to advanced Machine Learning models, our predictive forecasts help you proactively budget and plan procurement activities months in advance.
We give you the ability to see what is coming around the corner ahead! Spend Intelligence for the future, based on the collective past is what Simfoni brings to the table for our customers. The dedicated forecasting module applies statistical calculations on the past spend patterns and market intelligence to create forecast scenarios.
The forecasts approved by category managers are added to the procurement pipeline for the following months or quarters creating a comprehensive and forward-looking procurement plan and associated budget that delivers significant sourcing efficiency. We track all the KPIs you need to see if your execution is on target to both the budget and the forecast.
TAIL SPEND VISIBILITY
Uncover Patterns in the Many Small Purchases
Tail spend is traditionally defined as the ~20% of an organization’s spend that is derived from ~80% of their suppliers. Each transaction seems like a small deal, but together they cost time and money in processing so many transactions and managing all the suppliers.
The challenge is that there is a lot happening within that bottom 20% and without the right systems in place it can be very difficult to manage. This area is made up of transactions for:
• Items with low prices but frequently purchased
• Expensive one-time purchased items
• Items purchased at low prices and low volumes
• Misclassified items
These are typically too small or too infrequent to generate attention and, as a result, there is very little data gathered about them. When in fact, Accenture claimed that companies that effectively transform their tail spend typically realized savings between 10 to 20 percent by improving their spot buying processes alone – all while improving corporate buying compliance.
Simfoni Spend Analytics captures spend from all corporate finance systems including P-Cards, Expense Management, and ERP systems. And using AI and machine learning we can categorize all the spend – even the tail spend transactions – quickly and repeatedly. With up to date visibility into this area initiatives around supplier consolidation, pre-approvals, and contracts can significantly reduce the Maverick Spot Buying and increase planned purchasing.
SPEND MANAGEMENT AND AUTOMATION
Procurement teams don’t have the resources or tools to address all strategic and transactional spend. Teams know they need to digitize to do more with less
Simfoni Spend Analytics is a great way to understand what the organization spends and with which suppliers. Insights highlight what changes need to be made to better control and optimize spend.
Once those changes are made then it is important to track savings and operational improvements.
Simfoni Spend Analytics is also available as part of the Simfoni SpendAutomation Platform, a full-featured spend management solution.
Simfoni SpendAutomation fuses technology, purchasing content and sourcing services into a scalable digital+human solution.
SpendAutomation uniquely includes an integrated Marketplace with catalog content from preferred suppliers and on-demand BuyDesk sourcing services.
Digitized workflows create a seamless and engaging experience for users who access online purchasing content and self-source quotes through a single interface.
Buyers have the tools to analyze spend, organize and execute sourcing projects and track benefits.
Visit SpendAutomation.com to learn more
Purchase Price Variance (PPV)
Budget and forecast with known price variance
When planning budgets for next year or forecasting COGS (Cost of Good Sold), using existing material prices is a perfect place to start. However, in many cases companies don’t just pay a single price for an item.
With Spend Analytics you can see key metrics in the Purchase Price Variance dashboard. Reports for Item and Supplier Commonality, Spend under Contract, and Seasonality all help see your current material price variance and provide the insights to narrow that price variance range.
Material prices fluctuate for many reasons. Some reasons, like seasonality are not under your control. The costs for seasonal items can be managed through bulk purchases and holding inventory or annual contracted prices, reducing the material price variance.
Some cost variations are under your control. Savings through volume discounts and better terms are achievable when you strategically reduce the number of suppliers and put them all under contract.
Maverick spending is often fixed by making it easier to buy something using the procurement system rather than going around it. If you have no common system, then expect a wide price variance for everything that the company buys.
Having a centralized procurement department and/or a centralized purchasing system can increase the use of contracted suppliers and greatly reduce purchase price variance. This makes both budgeting and forecasting easier activities. And supplier risks that can lead to purchase price variance better understood.
Uncover the and Savings Opportunities
Private Equity focuses on making companies more efficient. Simfoni Spend Analytics can provide financial insights and opportunities into savings from procurement that are useful to Private Equity firms in many ways.
Deal Value Analysis During Due Diligence
Even if you have full access to a company’s books, uncovering all the wasteful spending is a challenge. Powered by our AI-engine, Spend Analytics can bring together, cleanse, normalize, and enrich large sets of transactional data and assign categories in days. The automated Opportunity Assessments module provides a list of quantified savings opportunities, and their difficulty to achieve, that can be included in the deal value calculations.
Savings Roadmap & Tracking System
For the company that was just purchased or a large portfolio company that you think has more room to reduce spend, Spend Analytics can be applied and used. Opportunity Assessments can provide their roadmap to savings and Supplier Reports can show the procurement performance. With our quick procurement data processing AI-engine, the analytics can be updated on a frequent basis, not just once or twice a year, allowing for regular monitoring of progress.
Spend analytics can be applied to each company in your portfolio and also evaluated across the portfolio. This can result in additional savings from getting volume discounts to benchmarking purchase price variances. It can help lowering procurement risks by having qualified primary and secondary suppliers.
See How Your Impact Cost Per Bed
Places like nursing home and hospice centers often receive money from governments and NGOs based on the costs per bed. Understanding procurement metrics across a set of homes or comparing to industry averages has been difficult to achieve, until now. Simfoni Spend Analytics can show your cost drivers and important KPIs, such as cost per bed, for each location or in aggregate.
Capture, Measure, and Visualize the Big Picture
Covid-19 brought unexpected expenses with it, including purchasing additional personal protective equipment (PPE) often from new vendors as inventory dried up. Procurement may no longer have a good understanding of the spending patterns and deviations from budgets. Our spend analysis software can capture transactional data from any of your business systems and use machine learning and rules engines to clean, normalize, enrich, and classify that data. We provide dashboards with filters and drill-down to view your spending from many points of view – by location, category, supplier, etc.- for metrics that matter, such as cost per bed.
Savings Roadmap & Tracking System
We provide a list of ranked savings opportunities and wave map to guide your initiatives. See each quantified savings opportunity and the ease of completion. As progress is made, the analytics can be refreshed, allowing for regular monitoring of critical KPIs and metrics, like cost per bed, and overall procurement performance.
Spend analytics can be applied to each home under management and evaluated across the portfolio. This can result in additional savings from volume discounts to negotiations based on benchmarked purchase price variances. It can help lowering procurement risks by having qualified primary and secondary suppliers.
Gain Visibility in Recent Spend on Your Next Contracts
In 2020 Covid-19, has changed how the world works. Revenue streams and expenses for Colleges and Universities changed rapidly and drastically. Spend Analytics can show you where you spent money and help plan your purchasing as schools deal with new expenses associated with distance learning, in-person class, and hybrid learning models.
Capture, Measure, and Visualize the Big Picture
With so many tactical changes happening, including additional IT purchases for remote teaching and learning to reductions in food and beverage needs, procurement may no longer have a good understanding of the spending patterns and deviations from budgets. Our spend analysis software can capture transactional data from any of your business systems and use machine learning and rules engines to clean, normalize, enrich, and classify that data. We provide dashboards with filters and drill-down to view your spending from many points of view – by category, by supplier, by campus and more.
Savings Roadmap & Tracking System
In addition to providing the analytics, KPIs and metrics, we do some of the analysis for you. The Opportunity Assessments module generates quantified savings opportunities, grades them for ease of completion, and puts them into a logical roadmap. As progress is made and initiatives are completed, the analytics can quickly be updated, allowing for regular monitoring of savings progress and overall procurement performance.
Spend analytics can be applied to each department, school, and campus in your college or university system. This can result in additional savings from volume discounts and exploring benchmarked purchase price variances. It can also help lower procurement risks by having qualified primary and secondary suppliers.
Highlight material savings, and diverse suppliers.
High level and granular data help drive and execute your material and supplier management strategy.
Identify Consolidation Opportunities
Consolidating suppliers is a common way to reduce costs and make supplier management easier. Simfoni Spend Analytics can absorb data from multiple sources providing visibility across plants to see more places to save through consolidation and re-negotiating contracts. In addition, vendor names are normalized so you can capture all the spending with a particular supplier even if they are different in various systems.
Take Actions to Improve Supplier Diversity
No matter how you analyze your sourcing and purchasing data, Quick Filters allow you to see your diverse and non-diverse suppliers and compare the spending between them. With this new perspective you can make strategic and tactical decisions that support corporate diversity goals. Diversity Reports include all certified diverse suppliers automatically, saving time on status investigation and KPI calculations.
Understand Reasons for Purchase Price Variance
Prices fluctuate-sometimes with the season, sometimes with commodity price changes, and sometimes because of lack of supplier management. The Purchase Price Variance (PPV) dashboard allows you target the widest material price variations that are within your control. Usually this involves consolidating suppliers for certain materials, getting contract pricing, and improved forecasting to reduce spot buys.